Receipt Tip

Keep receipts for social media ads for at least 3 years to comply with IRS requirements and support tax deductions. In some cases, keeping them for up to 7 years is advisable.

Here’s a breakdown of best practices for retaining social media advertising receipts:

🧾 IRS Guidelines for Business Expenses

• Minimum retention period: 3 years   The IRS generally requires businesses to keep records that support income, deductions, or credits for at least three years from the date the tax return was filed or the due date of the return, whichever is later.

• Up to 7 years for certain situations   If you file a claim for a loss from worthless securities or bad debt deduction, you may need to keep records for up to 7 years.

📱 Social Media Advertising Receipts

• What to keep:

  • Invoices or receipts from platforms like Facebook, Instagram, LinkedIn, TikTok, or X (formerly Twitter)

  • Credit card or bank statements showing the transaction

  • Campaign reports showing ad spend and performance

• Why it matters:   These documents substantiate your business deductions and are critical in the event of an audit.

💡 Pro Tips

• Digitize everything: Paper receipts fade. Scan or save digital copies in cloud storage or accounting software.

• Label clearly: Include campaign name, platform, date, and purpose to make retrieval easy.